CLA-2-85:OT:RR:E:NC:N1:109
Ms. Debbie Moore
VP, CHB Services
Global Transportation Services, Inc.
1930 6th Avenue South
#401
Seattle, WA 98134
RE: The tariff classification of foldable solar chargers from China, duty allowance under HTSUS 9802.00.8068, and country of origin marking.
Dear Ms. Moore:
In your letter dated September 10, 2008, you requested a tariff classification ruling. In addition, you raised questions regarding the eligibility of a duty allowance under HTSUS 9802.00.8068 and country of origin marking on behalf of your client OPS America, Inc.
Your letter states that OPS America, Inc. will contract with a factory in China to assemble foldable solar chargers using American manufactured solar modules and other foreign manufactured components. The solar modules, which will be manufactured in the United States by a company known as PowerFilm, will be provided to the factory in China, free of charge, to be used in the assembly of foldable solar chargers. After assembly in China, the foldable solar chargers will be imported into the United States and sold to PowerFilm Inc.
When the solar modules are exported to China, they will be in a condition ready for assembly without further fabrication. After assembly into the foldable solar chargers, the solar modules fully retain their physical identity and will not be advanced or improved in condition except by being assembled into the foldable solar chargers.
The foreign components that are used in the assembly process are cut-to-size fabric, printed circuit boards, diodes, polyswitches, wires with overmolds, connectors, terminals, junction boxes, Velcro, grommets, labels, and cable seals.
The function of the foldable solar chargers is to provide lightweight, portable, and remote power for laptops, cell and satellite phones, GPS units, etc., in difficult and diverse environments. The foldable solar chargers will be purchased at retail directly from PowerFilm Inc., or from one of their authorized re-sellers.
You suggested that the proper classification of the foldable solar chargers is within subheading 8541.40.6020, which provides for “Other diodes: Other: Solar cells: Assembled into modules or made up into panels.” However, while the solar modules that are being exported to China to be utilized in the assembly process would qualify for classification under that subheading, the foldable solar charger being imported into the United States is not a solar module, but rather a static converter, to be specific it is a charger, which is provided for in heading 8504. As such, 8541.40.6020 is inapplicable.
The applicable subheading for the foldable solar chargers will be 8504.40.9550, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Static converters: Other: Rectifiers and rectifying apparatus: Other. The rate of duty will be 1.5 percent ad valorem.
You also inquire as to applicability of subheading 9802.00.8068, HTSUS, to the imported foldable solar chargers. Subheading 9802.00.80, HTSUS, provides a partial duty exemption for articles assembled abroad in whole or in part of fabricated components, the product of the United States, which were exported in condition ready for assembly without further fabrication, have not lost their physical identity in such articles by change in form, shape or otherwise, and have not been advanced in value or improved in condition abroad, except by being assembled and except by operations incidental to the assembly process, such as cleaning, lubrication, and painting.
All three requirements of subheading 9802.00.80, HTSUS, must be satisfied before an article may receive a duty allowance. An article entered under this tariff provision is subject to duty upon the full value of the imported assembled article, less the cost or value of such U.S. components, upon compliance with the documentary requirements of Section 10.24, Customs Regulations (19 C.F.R. 10.24).
Section 10.14(a), Customs Regulations (19 C.F.R. 10.14(a)), states that the U.S. components must be in a condition ready for assembly without further fabrication at the time of their exportation from the United States to qualify for the exemption. Components will not lose their entitlement to the exemption by being subjected to operations incidental to the assembly, either before, during, or after their assembly with other components. Section 10.16(a) Customs Regulations (19 C.F.R. 10.16(a)) provides that the assembly operation performed abroad may consist of any method used to join or fit together solid components, such as welding, soldering, riveting, force fitting, gluing, laminating, sewing, or the use of fastener.
Based on the information you have provided, the assembly process meets the standard for reduced duty treatment in HTSUS heading 9802. Therefore, the foldable solar chargers may enter under subheading 9802.00.8068, HTSUS, with allowances in duty for the cost or value of the U.S. components, upon compliance with the documentary requirements of 19 C.F.R. 10.24. Lastly, your request addresses the country of origin marking of the foldable solar chargers. You indicate that the importer intends to mark the goods using a label affixed to the outside of the charger. The label will include PowerFilm’s name/logo and website URL, the part number, and the words “Assembled in China. Solar Modules Made in the U.S.A.” A marked sample container was not submitted with your letter for review. The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain. Section 134.1(d), defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. If an imported article is to be sold at retail in its imported form, the purchaser at retail is the ultimate purchaser. In this case, it appears that the ultimate purchaser of the foldable solar chargers is your customer, PowerFilm, Inc. While it is true that the foldable solar chargers are assembled in China and utilizes solar modules of U.S. origin, a more suitable country of origin marking would be “Assembled in China with U.S.A. solar modules and other foreign components”, or “Assembled in China with solar modules manufactured in the U.S.A. and other foreign components” for the imported foldable solar chargers.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Linda M. Hackett at (646) 733-3015.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division